YouTube Finds Signing Rights Deals Frustrating

Carl Bialik from WSJ writes "YouTube executives are finding it a slog to get all of the necessary permissions to license the songs and shows users are putting on the popular site, the Wall Street Journal reports. 'YouTube or its partners must locate parties ranging from studios to actors, and from music composers to the owners of venues, and get them to sign off. Where they don't succeed, YouTube risks being hit with lawsuits or having to take popular content down. "It's such a mess because the [entertainment companies] have all of these valuable assets that are just locked up with so many people who need to sign off on them," says YouTube Chief Executive Chad Hurley. "I don't know what it requires, if the government needs to be involved," Mr. Hurley laughs. "I don't know."'"

Comments

Google bites the dust on this one

[Fnkmaster]

Not to say that Google are complete idiots, but we all knew this was coming.

Were I behind the reigns at Google, I would have required they at least ink a few big content licensing deals before closing the transaction. In fact, with a bunch of licensing deals in place, possibly even some exclusive ones, I could see justifying a high valuation.

Why pay the huge takeout premium they paid and then have to do all the hard work after the takeout? I meant, the technology is commoditized and trivial, and the userbase can't really be worth that much to a company as big as Google, especially when they already have Google Video and could easily outgrow YouTube by spending a tiny fraction of the takeout price on advertising and promotions.

The whole deal is just downright strange.

Re:Google bites the dust on this one

[mav[LAG]]

Google is not run by fools. By inheriting YouTube's (fairly minor) legal hassles, they - and not someone else - get to decide what battles to fight and what to settle. Google has already done this with the library and book projects - picking and choosing their fights so that they get to determine what legal precedent is set. Some fights they won, some they lost but it was a lot better than sitting on the sidelines watching someone else being sued.

Video is going to make Google an absolute fortune in five years time. The last thing they wanted is someone with shallower pockets determining the legal landscape for them. The technology is not yet "commoditized and trivial" enough. But it won't take long and when it is, the legal and business environment will have been determined by Google itself and no-one else.